Civil Procedure Code, 1908
Order 37 Rule 3(5) & Order 7 Rule 11—Recovery suit—Applications of defendants seeking leave to defend and rejection of plaint—Territorial jurisdiction—Submission of the defendants that since the defendants are situated in Chennai, the plaintiff could not have instituted the present suit before the Delhi High Court—While deciding an application under Order 7 Rule 11 of the CPC, reference has to be made only to the plaint and the documents filed along with the plaint—Relevant clause in invoices provides that payment from defendants to the plaintiffs were to be made only in New Delhi—Even in respect of 29 invoices the goods were delivered in Delhi—Explanation to Section 20 of the CPC is only in relation to Section 20(a) and (b), on the aspect of where a corporation can be said to be carrying on business and does not preclude jurisdiction of courts where cause of action arises, wholly or in part, as provided in Clause (c) of Section 20—Conversely, the plaintiff cannot be compelled to go to the place of residence or business of the corporation and can file a suit at a place where the cause of action, wholly or in part, arises—Reliance placed by the counsel for defendants on the Explanation to Section 20 of the CPC is misplaced—Plaintiff has correctly invoked the doctrine of 'the debtor must seek creditor'—Defendant has not denied the fact that registered office of plaintiff is in New Delhi and various e-mails and whatsapp communications have also been sent on behalf of plaintiff from New Delhi to defendants, calling upon the defendants to pay the outstanding amount—Nor is there any dispute over the fact that payment under the invoices was to be made by the defendants in New Delhi—On both counts, one, that payments were to be received in New Delhi and second, on the principle of 'the debtor must seek the creditor,' the territorial jurisdiction of Delhi Courts is made out—Applications are dismissed and plaintiffs has become entitled to a decree forthwith. [Civil Procedure Code, 1908, Section 20]
[Paras 16 to 18, 23, 26, 27, 29 to 31]